The economy of Latin America is expected to grow at a slower rate this year compared to the previous year, as stated by Fitch Ratings, a renowned ratings firm. Insufficient demand, high interest rates, and strong linkages to China and the United States, both of which are experiencing a slowdown, are the primary reasons for this.
In comparison to the 2.3% growth that was seen in 2023, Fitch forecasts that the region’s economy would only rise by 1.5% in 2024.
A statement made by Shelly Shetty, the managing director of Fitch, indicated that major countries such as Mexico and Brazil are contributing to the region’s poor performance. She also stated that Argentina might see a recession under the leadership of Javier Milei, the country’s new leader.
According to Shetty, Latin America possesses some favorable aspects for the future, including political stability, natural resources for the production of clean energy, and an increase in Asian companies that are shifting to Mexico.
However, she cautioned that many nations in the region might not be able to take advantage of these prospects due to meddling from the government, not enough reforms being implemented, and social problems. A notable exception is Brazil, which has demonstrated considerable development in the aforementioned categories.
